Social Security and Social Security Disability Insurance (SSDI) Provisions in the Bipartisan Budget Act of 2015

Abstract

[Excerpt] Title VIII of the Bipartisan Budget Act of 2015 (H.R. 1314, P.L. 114-74) makes several changes to the Social Security programs. Among these changes is a temporary reallocation of the Social Security payroll taxes so that a larger share is deposited in the Disability Insurance (DI) trust fund to extend the life of this trust fund beyond its current predicted exhaustion in 2016. Under this provision, the allocation of the 12.40% Social Security payroll tax assigned to the DI trust fund increases from 1.80% to 2.37% and the allocation to the Old-Age and Survivors Insurance (OASI) trust fund decreases from 10.60% to 10.03%. These changes last through 2018. In addition, these provisions extend the Social Security Administration’s (SSA) demonstration authority for the Social Security Disability Insurance (SSDI) programs, make changes to data and earnings reporting, and increase penalties for benefit fraud. Title VIII of the act includes the following subtitles: Subtitle A. Ensuring Correct Payments and Reducing Fraud Subtitle B. Promoting Opportunity for Disability Beneficiaries Subtitle C. Protecting Social Security Benefits Subtitle D. Relieving Administrative Burdens and Miscellaneous Provisions